You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: Settlement date 1/1/2020 Maturity date 1/1/2044 Coupon rate 0.00% Coupons per year 2 Redemption value (% of par) 100 Yield to maturity

You find a zero coupon bond with a par value of $10,000 and 24 years to maturity. If the yield to maturity on this bond is 4.2 percent, what is the dollar price of the bond? Assume semiannual compounding periods. Input area: Settlement date 1/1/2020 Maturity date 1/1/2044 Coupon rate 0.00% Coupons per year 2 Redemption value (% of par) 100 Yield to maturity

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 8MC: Suppose a 10-year, 10% semiannual coupon bond with a par value of 1,000 is currently selling for...

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Input area:

Settlement date	1/1/2020
Maturity date	1/1/2044
Coupon rate	0.00%
Coupons per year	2
Redemption value (% of par)	100
Yield to maturity	4.20%
Par value	$10,000

(Use cells A6 to B12 from the given information to complete this question. You must use the built-in Excel function to answer this question. Leave the “Basis” input blank in the function. You may enter a constant as a hard coded value.)

Output area:

Price (% of par)
Price